March 28, 2022
(press release)
–
Buyers are surprisingly taking the news of Olin's decision to suspend production at its 190,000 tonne/y epoxy unit in Stade,
Customers are not immediately worried about supply despite the temporarily suspension because European buyers have halted buying or curbed volumes from certain high priced sellers in
Buyers see the company's decision as an attempt to preserve the high European prices despite increasing costs after
Immediate supply concerns are being sooth by some epoxy stock of European customers and the expected competitive price rates from
Some uncertainty on the demand trend over the coming months also emerged, as the war between
This could additionally affect European demand in an already historically high priced setting. It may not be the high epoxy season participants anticipate in 2022, as they may implement a more cautious approach, if the geopolitical clash persists. The auto sector were earlier expected to recover in 2022 if supply chain restrictions were to relax, though this is currently increasingly impossible if the war between
It is unclear whether production of Olin's upstream bisphenol A (BPA) and epichlorohydrin (ECH) at its integrated epoxy facility in Stade will additionally be closed for similar reasons for now. However, if BPA and ECH production at the site were to also be affected, this could exacerbate the market tightness for these associated products, particularly ECH, which stays narrow after low stocks following a flurry of high electricity prices and constraints also affecting operating levels in
Epoxy participants are closely watching the export condition from
However, increasing costs in
Export prices ex-
Prices well above this rate were additionally noted from
Original Source: ICIS Chemical Business, http://www.icis.com/.
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